**First Contracts Signed for Large-Scale Electricity Battery Storage in Cyprus**
On Tuesday, Cyprus took a significant step towards enhancing its renewable energy capabilities with the signing of the first contracts for large-scale electricity storage batteries. This initiative aims to mitigate the curtailment of renewable energy and increase the absorption of solar power into the national grid.
Energy Minister Michael Damianos announced that the agreements, which encompass a centralized storage capacity of 120 megawatts (MW), will be managed by the Transmission System Operator (TSO). The project, valued at €50 million, is expected to see the delivery of the batteries by January 2027, with installation anticipated to take two to three months. The goal is to have the systems operational by the summer of 2027.
“The summer of 2027 will mark a pivotal moment for our energy landscape, as we will have at least 120MW of storage batteries from the TSO,” Damianos stated. He emphasized that this development will enable the utilization of energy from photovoltaic systems that is currently lost due to storage limitations.
The battery storage systems are designed to capture excess renewable electricity during periods of overproduction and release it when demand increases. This capability is expected to significantly reduce the curtailments faced by solar generators across the island. The contracts were signed between the TSO and the Cyprus Telecommunications Authority (CyTA), both of which are public organizations.
The project will involve the installation of three battery energy storage systems located at transmission substations in Nicosia, Paphos, and Larnaca. TSO Executive Director Stavros Stavrinos explained that these locations were strategically chosen to ensure direct connectivity to the transmission system. Currently, renewable energy sources account for approximately 60% of electricity demand in Cyprus, a notable achievement, with installed photovoltaic systems exceeding 1,040 MW against an average demand of 650 MW.
One of the three planned storage systems will incorporate grid-forming technology, which is particularly suitable for isolated electrical grids like that of Cyprus. CyTA will collaborate with Huawei on this project, with Huawei providing Smart Battery Energy Storage Systems (BESS) that utilize artificial intelligence to optimize energy storage. These systems will employ algorithms to predict weather patterns, solar generation, and facility demand, allowing for precise charging and discharging schedules.
Former Energy Minister George Papanastasiou highlighted that this project has been in development since 2023 in conjunction with the European Commission, aiming to address the growing losses from renewable energy production. By the end of May 2023, approximately 160,000 megawatt-hours of green energy had been lost due to curtailments affecting residential photovoltaic systems, commercial solar parks, and wind installations.
“The challenge arises when electricity production from renewable sources surpasses demand during certain hours of the day, resulting in significant quantities of energy that cannot be utilized,” Papanastasiou explained. He noted that this issue has become more pronounced as solar capacity has expanded more rapidly than the necessary infrastructure to manage surplus generation.
Data from the distribution system operator indicates that around 306 gigawatt-hours of renewable energy were curtailed in 2025, a significant increase from approximately 167 gigawatt-hours in the previous year. Papanastasiou acknowledged the criticism regarding the lack of storage infrastructure development alongside the rapid growth of renewable generation, attributing delays to regulatory and funding challenges.
“Production and storage needed to progress in tandem,” he stated, asserting that storage has lagged behind production in many regions. In addition to the state-backed project, the Electricity Authority of Cyprus (EAC) and private developers are pursuing further storage investments. Currently, there are 36 applications for battery storage projects with a combined requested capacity of around 925 MW. The EAC has submitted proposals for storage facilities in Dhekelia and Moni, totaling 180 MW, while private sector projects exceeding 150 MW are at various stages of the approval process.
Papanastasiou clarified that the state-owned battery system will not operate on a commercial basis. Instead, its purpose will be to support grid stability and energy security. “Its role will be to stabilize the grid by storing energy during periods of overproduction and supplying it during times of deficit or risk of outages,” he said. He also noted that privately operated storage systems could eventually lead to lower electricity costs by enabling operators to store cheaper renewable energy for use during peak demand periods.
As Cyprus moves forward with this initiative, the development of battery storage systems is poised to play a crucial role in the island's transition towards a more sustainable and resilient energy future.